Are you drowning in a sea of subscription services? Trust me, you’re not alone. From streaming platforms like Netflix and Peacock to software and music subscriptions, it’s all too easy to get lost in the endless cycle of monthly charges. But when the time comes to cut the cord on a service, finding that cancellation button can feel like searching for a hidden treasure. And let’s be honest—it often seems like companies don’t want us to cancel at all.
Well, Californians have had enough. A new law is making sure that companies can no longer make canceling as difficult as signing up.
What’s the Deal with California’s New Subscription Law?
On September 24th, Governor Gavin Newsom signed Assembly Bill 2863, introduced by Assemblymember Pilar Schiavo, into law. This new law, effective July 1, 2025, takes aim at auto-renewing subscriptions that are way too easy to sign up for but often a hassle to cancel.
Here’s what the bill does:
- Simplifies cancellations: Businesses must offer a simple, single-click method for canceling subscriptions, using the same medium that was used to sign up.
- Price transparency: Companies are required to notify subscribers in advance about price changes.
- Cancellation reminders: Consumers will now receive reminders about subscription costs and cancellation methods, so no more surprise charges!
Why Is This Law Important?
Anyone who’s ever tried to cancel an online subscription knows the frustration. Whether it’s hidden cancellation links, confusing instructions, or endless loops, many companies seem to make it intentionally difficult to break free. AB 2863 changes the game by ensuring that consumers can easily cancel subscriptions online, with the same ease as signing up. No more wild goose chases!
According to Assemblymember Schiavo, “At a time when too many in our community are struggling, unwanted subscription renewals can really add up. AB 2863 is the most comprehensive ‘Click to Cancel’ legislation in the nation, ensuring Californians can cancel unwanted automatic subscription renewals just as easily as they signed up—with just a click or two.”
What Does This Mean for the Rest of the Country?
California often sets trends, and this law could pave the way for similar protections across the U.S. In fact, the Federal Trade Commission (FTC) has already proposed comparable rules, meaning other states might follow suit. As we’ve seen with digital consumer protection in the past (think of Adobe’s tricky subscription renewal practices), having clear, consumer-friendly laws like this can save people both time and money.
When Does This Take Effect?
Mark your calendars for July 1, 2025. That’s when this law officially kicks in. So, if you’re fed up with juggling endless subscriptions, help is on the way!
We’ll discuss this more on the next episode of the Geek Freaks podcast, so be sure to tune in for our take on how this law could change the subscription landscape.
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